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2 years ago

In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported?

Business

1 answer:

zloy xaker [14]2 years ago

5 0

Answer:

Cash inflow from Financing Activity.

Explanation:

We know, that issuance of bonds = Financing Activity in cash flow statement.

But only the transactions involving cash transactions are recorded in cash flow statement.

Thus, here the purpose of issue of bonds is to acquire a building, but it is not issued in exchange of building.

Thus, the cash collected from issue of bonds will be used for the acquisition of building therefore, cash collected through issue of bonds is cash inflow from financing activity.

When the building will be bought it will be cash outflow in investing activity.

Final Answer

Cash inflow from Financing Activity.

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2 years ago

A local business woman noticed that after she had paid all the costs of conducting her business that year a substantial amount o

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2 years ago

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Actions, attire, grammar usage, and proofreading all affect the ________ of an employee.

alexdok [17]

Answer:

The most appropriate answer is professionalism.

Explanation:

The professionalism of an employee can be seen by the action he does in working, attire he wears at work, grammar usage in emails and letters written by him and many more other things.

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2 years ago

A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. W

frosja888 [35]

Available Options Are:

a. Cost of Goods Sold

b. Net Profit Margin

c. None of these

d. Asset Turnover

Answer:

Option B. Net Profit Margin

Explanation:

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Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.

Option D is incorrect because asset turnover formula is:

Asset Turnover = Sales / Total Assets

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3 years ago

If an automobile manufacturer pays $200 for a car windshield, $400 for four car tires, $100 for a car CD player, and sells cars

elena55 [62]

Answer:

$20,000

Explanation:

GDP is the market value of all final goods and 

services produced within a country in a given period of time.

The GDP includes only the value of final goods, the value of manufactured automobile in this question, not the value of intermediate goods used in it, the windshield, tires, and others.

Reason: The price of intermediate goods (windshield, tires, CD player) is already included in the final price of $20,000.

Hence, GDP discourage to include these intermediate goods value as it will lead to double counting given that they're already included in final price of $20,000.

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2 years ago